Normal Balance Equation correct answers Assets = Liability + Equity
Net income correct answers (profit) = Revenues - Expenses
Revenues correct answers Sales of products or services to customers
Expenses correct answers Costs of selling products or services
Dividends correct answers Distribution of profit to stockholders
Financing Activities correct answers transactions the company has with investors and
creditors (for borrowed money)
Investing Activities correct answers Transactions involving the purchase and sale of
resources that provide benefit for several years
Operating Activities correct answers transactions that relate to the primary operations of the
company
Financial Reports correct answers 1. Balance Sheet
2. Income Statement
3. Statement of changes in equity
4. Statement of cash flows
Storage Units correct answers Classification as assets, liabilities, equity, revenues and
expenses
Income Statement correct answers Reports revenues and expenses over an interval of time,
assess the company's ability to earn a profit from running its operations
Statement of Stockholders Equity correct answers summarizes the changes in stockholders
equity over an interval of time, =Common Stock + Retained Earnings
Balance Sheet correct answers Presents the financial position of the company on a particular
date, Financial position: resources = claims to resources
Statement of Cash Flows correct answers measures activities involving cash receipts and cash
payments over an interval of time
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